Why do you think that Kodiak pulled the plug?
This is from the S1 filing: "On March 2, 2017, we entered into a second amendment to the Purchase Agreement to extend the commitment period to December 31, 2018, increase the maximum commitment amount to $3 million, and change the purchase price calculation formula for the shares that may be sold to Kodiak Capital to 70% of the lowest closing price for the five consecutive trading days immediately preceding"
So Kodiak can buy shares at a 30% discount on the lowest closing price in a 5 day 'look back' period from when MJTK sells their shares.
That is basically a guarantee that Kodiak will make money, provided they sell the shares quickly (if they think they are going to go down in value), or hold them then sell.
One would think, that with funding, MJTK would be able to produce some results. Recently, they have released a beta product with multiple dispensaries, brands, and users in Colorado. Not great, but not bad.
From Kodiak's perspective, any injection of cash will likely result in a greater payback, especially when considering the discount and look back period.
So why would they pull the plug? This is about as close to a guaranteed winning investment as you will ever find.
